Employers Fight Against the Rising Cost of Health Care
Have you ever wondered why health care is so expensive in the United States? American Employers pay the highest health care costs in the world. Employers remain in the dark about why costs are so high and believe they are powerless to stop this trend.While most healthcare professionals say rising costs are due to an aging population, expensive new technology and medications or new government regulations; the truth is that most health care providers are increasing their prices in order to increase their profit margins. The true fundamental flaw in the health care industry is irrational pricing with no motivation to reduce their costs.
Over the next few months millions of employers will endure medical plan renewals. Most are expecting to see benefits costs to increase substantially. To avoid massive monthly premium increases many will shop for new insurance carriers as they do every year. Some employers will follow the popular trend and shift more costs to their employees by increasing premiums, deductibles and out-of-pocket expenses. Employers that continually “rate-shop” or shift costs to employees are not solving the rising cost of healthcare, but are submitting to the health care industry.
So how can employers fight against paying increasingly unreasonable costs of medical benefits? They must demand transparency from the healthcare industry. Employers who are facing renewal should consider health plans that contain the following three cost saving strategies:
1. ZERO increases to premiums and possibly see premium decreases the following year. 2. The ability to increase benefits and add more primary care series with no increase in out-of-pocket charges for members. 3. The capability to audit and re-price every medical claim for billing errors and fraud, to guarantee transparency and reasonable prices from the healthcare industry.
Fortunately, The Open SolutionTM empowers employers to fight back and take control of their health plan costs. With The Open SolutionTM, an employer on average will spend less per employer on health care than the previous year by incorporating multiple cost saving strategies. These strategies allow The Open SolutionTM has no network requirements, allowing employees to visit any doctor or facility. Below are some examples of successful experiences with these cost saving characteristics in action: • Texas Service Company- Dropped Blue Cross PPO and reduced their premiums by 68%. Additional savings allowed the company to provide free vision, dental, and life insurance and establish a free medical clinic on-site for employees and their dependents. • Large Western Tribe- Reductions were so dramatic that rates were lower in 2014 than when they were in 2008. Saving millions of dollars allowed the tribe to add more participants to the plan. • Home Furnishings Company – Experienced a 40% savings the first year after implementing new plan ($2.5M reduction on previous $6M expense). With 180 stores in five states, the company’s 1,800 employees are free of PPO network restrictions. Eliminating the burden of assembling a multi-state network has greatly simplified the health insurance plan and reduced costs. The Open Solution™ savings example: Reduced $140K hospital bill to $12K – a savings of more than 90%.
The Open Solution™ has a track record of reducing employer medical plan costs. Many employers utilizing The Open SolutionTM experience renewal season differently! Many of them will tell you that the budget has been stable or deceased, which allows them to keep their money and attention on their business.
The employers who are using The Open Solution TM are leading the fight against expensive health care, while saving a fortune. If you want to have a better renewal experience and spend less on health care, please visit www.theopensolution.com